- The Dow Jones rises 0.58% on Wednesday.
- The Nasdaq 100 rose 0.94% daily, reaching a new all-time high at 21,445.
- The S&P 500 gains 0.40% and reaches a new all-time high at 6,076.
The Dow Jones presents a rise of 0.58% after a drop in the ADP private employment report and in the services PMI in November.
The Dow Jones Industrial Average began trading at 44,804, while the Nasdaq 100 technology index opened at 21,268. The S&P 500 began trading at 6,057, setting a new all-time high today at 6,076.
Salesforce Inc and Amazon keep the Dow Jones in negative territory
The Dow Jones Industrial Average is currently trading at 44.954, up 0.60%, visiting near one-week highs at 45.018.
The company specialized in offering comprehensive business solutions, Salesforce (CRM), presents a rebound of 8.11% in its share price, marking a new all-time high of $368.70 after publishing its quarterly report. CRM posted revenue of $9.44 billion, higher than the $9.35 billion projected by analysts. In the same vein, Amazon shares rose 2.39%, reaching a new all-time high at $220.00, marking its fourth consecutive session with gains.
Nasdaq 100 Hits New All-Time High Buoyed by Marvell Technology Earnings Report
The Nasdaq 100 technology index gains 0.96% on Wednesday, trading at the time of writing at 21,429, reaching a new all-time high at 21,445.
Marvell Technology (MRVL) shares soared 23.51% today, hitting a new all-time high of $118.46 following the release of its earnings report. MRVL posted revenue of $1.52 billion, beating analysts’ $1.45 billion projection, as well as earnings per share of $0.43 versus the consensus estimate of $0.41.
S&P 500 hits new all-time high after disappointing US economic data
The S&P 500 index signs its fifth consecutive session on the rise, gaining 0.38% on Wednesday and reaching a new all-time high at 6,057.
The ISM services PMI recorded a drop in November to 52.1 points from 56 reached in October. Likewise, the ADP private employment report reported the creation of 146,000 positions in November, below the previous 184,000 and the 150,000 expected.
Technical analysis of the Nasdaq 100
The Nasdaq 100 reacted higher on short-term support given by the November 27 low at 20,611. We see the next key support at 20,293, the pivot point of November 19. To the upside, the 22,000 zone is projected as possible profit taking as it converges with the 1.272 Fibonacci extension.
Nasdaq 100 4-hour chart
The Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
